Slump in India’s Real Estate Sector: Past shocks and Way Ahead
The Indian economy is going through a turmoil and registered a growth rate of 4.5 per cent in the second quarter of 2019-20. This has been largely due to reduced consumption and investment demand. The slowdown impact is also felt in other key sectors of the economy such as the real estate sector. Real estate is an important contributor to the economy with 6 to 7 per cent share in GDP and a well-functioning real estate sector is crucial for a healthy economy and employment generation, crucial need for Indian economy at the moment. Global Financial Crisis However, India’s real estate sector is undergoing a hard time due to a number of reasons and it is important to find solutions to these problems for its revival. To understand the crux of the problem, it is important to back in time for deciphering the real cause of the entire issue. Prior to the Global Financial Crisis (GFC) of 2007-08, when the global as well the domestic economies were booming, developers borrowed huge su